Latest updates

Regulation in Guernsey – what happens when it goes wrong
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 18 July 2019

In a 2018 decision, the Royal Court showed how far reaching penalties and sanctions can be when an individual working in a regulated industry fails to put the right procedures in place or is unaware of a rule or requirement. The implications can include significant financial penalties, a public statement and, at worse, a loss of livelihood.

The list goes on – why Guernsey bridges gap between funds and stock exchanges
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 11 July 2019

It is well known that new investment company listings have been relatively sporadic of late – this is not entirely due to Brexit, but it is clear that Brexit has stalled a number of fundraisings which have gone out to market. Fortunately, once there is some clarity on the way forward, there may be a race to market. Data from the London Stock Exchange (LSE) to the end of January 2019 shows that Guernsey is home to more non-UK incorporated companies listed on the LSE than any other jurisdiction globally.

Guernsey Royal Court's expertise in complex trusts cases
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 04 July 2019

Two recent cases in the Guernsey Royal Court – one relating to the variation of a settlement and one relating to the winding up of a trust – demonstrate the complex trusts cases that regularly come before the court. The first case involved an application from two mothers on behalf of their children, whose father is a famous professional footballer. In the second, an investment firm, as the sole member of a discretionary class of beneficiaries, applied for a trust to be terminated and the trust fund to be distributed to it.

Update on economic substance rules for Guernsey fund managers
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 27 June 2019

The Income Tax (Substance Requirements) (Implementation) Regulations 2018, as amended, came into effect on 1 January 2019 and apply to accounting periods commencing on or after that date. The new economic substance requirements apply to certain Guernsey tax-resident companies and have been passed in order to comply with the EU Code of Conduct Group on Business Taxation. This article summarises the current position relating to the substance requirements for fund management companies.

Green finance – a world first and a force for good which also makes economic sense
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 20 June 2019

Increasingly stark and startling messages relating to the environment and climate change are now commonplace in the media. That is why it is so refreshing to know that Guernsey is taking a leading role on the world stage and using its strengths to produce a significant positive impact, including through the implementation of the Guernsey Green Fund.

Often overlooked competition law aspects of restrictive covenants in contracts
  • Employment & Benefits
  • Guernsey
  • 19 June 2019

The perennial conversations around restrictive covenants in employment contracts and service contracts of a similar nature are familiar. Employers want maximum restriction on employees who leave but must be careful not to overstep the mark as covenants which are unduly restrictive risk being struck out by the courts.

Often overlooked competition law aspects of restrictive covenants in contracts
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 13 June 2019

Employers want maximum restriction on employees who leave but must be careful not to overstep the mark as covenants which are unduly restrictive risk being struck out by the courts. As such, employers should be aware that disgruntled employees can file complaints with the Guernsey Competition and Regulatory Authority and might also bring civil actions for damages pursuant to Section 42 of the Competition Ordinance.

New AIC code and implications for LSE-listed offshore companies
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 09 May 2019

The Association of Investment Companies Code of Corporate Governance (AIC code) is a framework of best practice for the governance of investment companies. The new AIC code applies to accounting periods which began on or after 1 January 2019. As such, Guernsey boards are urged to (among other things) review their existing corporate governance arrangements and determine which code is applicable to their companies.

Fund managers' perspective on Guernsey substance rules
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 18 April 2019

The government has approved new regulations which impose an economic substance test on Guernsey tax-resident companies in order to meet the requirements of the EU Code of Conduct Group. The regulations, which came into force on 1 January 2019, establish tests for tax-resident companies carrying on 'relevant activities', including fund management.

Successful application for variation of court order and construction of trust instrument
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 04 April 2019

When applying to the court for an order with respect to a trust, it is important to consider how future circumstances are changing and how this might be provided for without the need for further recourse to the court. A recent case involving a Jersey trustee, which had applied to the Royal Court of Guernsey to vary an order previously made by the Royal Court and to invoke the court's power to construe a trustee power under its Public Trustee v Cooper jurisdiction, provides clarity in this regard.

Guernsey Royal Court issues regulatory decision on prohibition orders, fines and public statements
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 28 March 2019

The Guernsey Royal Court recently issued a regulatory decision on prohibition orders, fines and public statements. In this decision, the deputy bailiff found that the Guernsey Financial Services Commission did not have the jurisdiction or power to make prohibition orders that were limited in time; it only had the power to make unlimited prohibition orders (as in the United Kingdom) against the defendant – although it could have indicated when it might be appropriate for the defendant to reapply for a licence.

Fund managers' perspective on Guernsey substance proposals
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 07 March 2019

Royal Court issues letter of request to High Court
  • Insolvency & Restructuring
  • Guernsey
  • 11 January 2019

Two joint administrators recently applied to the Royal Court of Guernsey seeking an order that it issue the High Court of Justice of England and Wales with a letter of request to act in aid of and auxiliary to the Royal Court in recognising their appointment as administrators of a company. While the Royal Court has dealt with incoming letters of requests, in making the application, counsel was unaware of any case where the Royal Court's jurisdiction to issue a letter of request had previously been considered.

Royal Court issues letter of request to High Court
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 10 January 2019

Two joint administrators recently applied to the Royal Court of Guernsey seeking an order that it issue the High Court of Justice of England and Wales with a letter of request to act in aid of and auxiliary to the Royal Court in recognising their appointment as administrators of a company. While the Royal Court has dealt with incoming letters of requests, in making the application, counsel was unaware of any case where the Royal Court's jurisdiction to issue a letter of request had previously been considered.

Guernsey Green Fund – environmentally friendly wrapper
Ogier
  • Environment & Climate Change
  • Guernsey
  • 29 October 2018

The Guernsey Financial Services Commission recently introduced the Guernsey Green Fund designation to provide investment managers with an opportunity to "assure investors that their investments are contributing to initiatives that have a positive environmental impact on the planet and in so doing inspire confidence that their investments are well regulated". The designation is available to registered and authorised schemes run in accordance with the Guernsey Green Fund Rules.

Guernsey Green Fund – environmentally friendly wrapper
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 25 October 2018

The Guernsey Financial Services Commission recently introduced the Guernsey Green Fund designation to provide investment managers with an opportunity to "assure investors that their investments are contributing to initiatives that have a positive environmental impact on the planet and in so doing inspire confidence that their investments are well regulated". The designation is available to registered and authorised schemes run in accordance with the Guernsey Green Fund Rules.

How Guernsey is benefiting from global M&A boom
Ogier
  • Corporate Finance/M&A
  • Guernsey
  • 24 October 2018

A variety of factors are fuelling a sustained boom in M&A activity around the world, including a number of mega-deals across a variety of sectors. Irrespective of deal size, a wide range of positive factors has driven deal volume. All of this is good news for the financial services community in Guernsey, which is seeing significant growth in work as a result – not least law firms with experienced M&A teams.

How Guernsey is benefiting from global M&A boom
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 18 October 2018

A variety of factors are fuelling a sustained boom in M&A activity around the world, including a number of mega-deals across a variety of sectors. Irrespective of deal size, a wide range of positive factors has driven deal volume. All of this is good news for the financial services community in Guernsey, which is seeing significant growth in work as a result – not least law firms with experienced M&A teams.

Plans for Guernsey deposit protection scheme to be laid out before end of 2018
  • Real Estate
  • Guernsey
  • 05 October 2018

The Office for the Environment and Infrastructure recently announced that a new deposit protection scheme will be planned before the end of 2018. The announcement follows news that a local estate agent has ceased trading, leaving some tenants and landlords uncertain of their position with regard to rents and deposits that were being held by that agent. The proposal is likely to be that Guernsey should introduce a similar, if not identical, scheme to that already in place in Jersey.

Plans for Guernsey deposit protection scheme to be laid out before end of 2018
Ogier
  • Private Client & Offshore Services
  • Guernsey
  • 04 October 2018

The Office for the Environment and Infrastructure recently announced that a new deposit protection scheme will be planned before the end of 2018. The announcement follows news that a local estate agent has ceased trading, leaving some tenants and landlords uncertain of their position with regard to rents and deposits that were being held by that agent. The proposal is likely to be that Guernsey should introduce a similar, if not identical, scheme to that already in place in Jersey.